Question

Operating budgets are concerned with:

a.inflows and outflows of cash.
b.cost-cutting activities of a firm.
c.income-generating activities of a firm.
d.financial position of a firm.

Answer 1

c.income-generating activities of a firm. Operating budgets are concerned with the income-generating activities of a firm. They focus on financial planning, resource allocation, and controlling expenses for day-to-day operations.

Step-by-step explanation:

Operating budgets are concerned with the income-generating activities of a firm. They focus on the financial planning and allocation of resources for day-to-day operations.

The main purpose of an operating budget is to estimate and control expenses, manage cash flows, and determine the profitability of the business. It includes items such as sales revenue, production costs, marketing expenses, and administrative expenses.

For example, a manufacturing company's operating budget may include sales projections, raw material costs, labor expenses, and overhead costs.